DUBLIN'S GRAFTON Street is to lose another leading trader with the decision by the ladies fashion multiple Wallis to seek a replacement tenant for its premises near the bottom of the street, writes JACK FAGAN

The move comes at a time when most traders have been looking for rent reductions because of a significant fall-off in consumer spending.

CB Richard Ellis in London is handling the disposal of the lease, targeting specialist retail agents and a number of high profile traders. Wallis is part of the giant Arcadia Group which operates a large retail centre on St Stephen’s Green under the Topshop label.

Wallis is paying a rent of €469,500 under a sub-lease from the adjoining River Island store but has an outstanding rent review due from August, 2008. The 35-year lease dates back to 1988 and provides for five yearly rent reviews. The store is subject to rates of €46,254 in 2009.

With a ground floor trading area of 160sq m (1,724sq ft) and another 135sq m (1,460sq ft) in the basement – as well as ancillary accommodation – the store will have obvious appeal to many overseas fashion houses, though it could be a different matter altogether if they have to pay the new rent which could well increase to almost €600,000 per annum.

A large number of stores on the street are over-rented and, in instances where new leases are available, landlords are increasingly offering rent-free periods and other concessions to attract the right tenant. Around 10 shops are available on Grafton Street but virtually all of them are too small for mainline traders. River Island will obviously be anxious to secure a covenant as strong as the Arcadia Group for the Wallis store.

The River Island and Wallis buildings are owned by property developer David Daly. He bought them at the height of the property boom in September, 2007, for around €115 million. River Island pays an overall rent of €2,152,500 – the highest Zone A rate on the street of €13,751 per sq m (€1,275 per sq ft) compared to an average of €9,418 per sq m (€875 per sq ft).

In spite of all the high street gloom at the moment, agent Savills has attracted better than expected interest in the former Oasis store on Henry Street. Three leading fashion retailers, including one from the Continent, are pitching for the store which has a trading area of 200sq m (2,152sq ft). The rents being offered range from €375,000 to over €400,000 per annum.

Meanwhile, CBRE has reported that while retail sales are down, the footfall on Dublin’s high streets has remained consistent over the last three months. The study shows that an average of 20,800 people per hour visited Henry Street during peak shopping hours while 21,200 were counted in Grafton Street.

On Board is continuing to trade in the Creation Arcade off Grafton Street despite the recent sale of the complex. The company specialises in surf boards, snowboarding and sailing equipment as well as clothing. It also operates a similar store at Crofton Road in Dún Laoghaire during the peak summer months.